The Flexible Budget Variance for Direct Labor Is Separated into Two

question 129

True/False

The flexible budget variance for direct labor is separated into two components: a direct labor rate variance and a direct labor price variance.

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Definitions:

Beginning Units

The quantity of inventory on hand at the start of an accounting period.

Ending Units

The quantity of inventory items or goods unsold at the end of an accounting period.

Production Budget

An estimate of the total cost of production that includes direct labor, raw materials, and overhead expenses for a specific period.

Budgeted Unit Sales

The forecasted quantity of products that a company plans to sell over a specific period.